June Rental Prices Broke Records in 44 Cities
Realtor.com rental listing costs were up 8.1% year-to-year in June, and two Fla. metros ranked in the top 10 for increases: Tampa-St. Pete, up 21.2% and Jacksonville, up 14.4%. Overall, two-bedroom units saw the largest increase, 10.2%, as demand for a larger living space continues.
CHICAGO – The home listing shortage has forced more buyers to rent; and that has boosted rental demand and, as a result, rental prices. Nationwide, the U.S. median rental price in June jumped 8.1% year-to-year, reaching $1,575, according to prices from realtor.com’s website.
The specific asking price for two-bedroom units rose even more as demand spiked. Those saw a 10.2% increase in rental prices year-to-year as consumers’ demand for more space remained high.
Two Florida markets made the top 10 list for rent increases: Tampa ranked third with year-to-year rent increases of 21.1%, and Jacksonville was No. 10 with increases of 14.4%.
Florida metro area rent increases for June, according to realtor.com
- Jacksonville: $1,310 average rent, up 4% month-to-month and 14.4% year-to-year
- Miami-Fort Lauderdale-West Palm Beach: $2,153, up 7.7% month-to-month and 13.3% year-to-year
- Orlando-Kissimmee: $1,500, up 3.9% month-to-month and 13.1% year-to-year
- Tampa-St. Petersburg-Clearwater: $1,605, up 5.6% month-to-month and 21.1% year-to-year
Rental prices in 44 of the largest 55 metros broke records last month. The largest gains were recorded in Riverside, Calif.; Tampa; and Phoenix, which all posted increases above 20% year-over-year, realtor.com reports.
“The surge we’re seeing in rental prices is likely to exacerbate the K-shaped, or uneven, nature of the pandemic recovery in the U.S.,” says Danielle Hale, realtor.com’s chief economist. “Rents are rising at a faster pace than income, which is adding to the challenges faced by lower-income Americans as they struggle to recover from job losses and other hardships brought about by COVID.”
According to Hale, rental prices aren’t likely to ease unless there is a shift – either a higher number of rentals or greater number of homes listed for sale.
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